Log book loans – the inexpensive and easy source of obtaining funds

Your car can help you fetch more funds for your business or personal emergency.

Your car can help you fetch more funds for your business or personal emergency. Log book loans are financial assistance provided with cars and automobiles are collateral security for the loan. These kinds of loans are very popular in the United Kingdom where people in need of funds resort to borrowed funds with their personal property as security for the loan. The advantage of these loans it that they lending company does not place any restriction on the further use of your car during the loan period. The owner is free to use the car as he wishes but is forbidden from selling or making any material alterations without the lender’s approval.

Conditions for obtaining loans against your car

There are various conditions to be satisfied for obtaining loans against your personal car. The car should be in the name of borrower and should be registered. The car should not be much old, meaning it should have enough life remaining to fetch enough money if sold. The bottom line is, the lender should be able to realize the money due from borrower by selling the car in case he is unable to repay the loan amount. Further, no other loans should be taken by the borrower using the car as a collateral security. The vehicle insurance should be valid and active for the car and all applicable taxes and duties should be duly paid by the borrower. Logbook loans are basically secured loans in nature that provides ample assurance to the lender about recovering his funds from the borrower.

Loan appraisal process

Appraisal is the process by which the background of the borrower is verified and confirmed before the loan is sanctioned. The lender obtains assurance that the residence of the borrower is true and matching with the records submitted by him. Details and repayment pattern of loans previously taken are also studied to learn more about the loan history of the borrower. Borrowers who have defaulted in previous loans with other creditors may face difficulty in getting loans or may even be rejected from obtaining further loans. Credit rating reports provided by credit ranking companies and banks are also referred to ensure the authenticity and capability of the borrower.

Advantages of loans against security

Loans are very important to business or personal life. They aid people in meeting their personal expenditure and in running their businesses effectively. In the case of traders, loans help in prompt payment of salaries, routine expenses and purchase of materials for the business. For individuals loans can be used for personal purposes like taking vacations, meeting medical expenditure, providing higher education to children, etc. They are also effective in reducing taxes as interest paid on loans is allowable expenditure under most of the tax laws across the world. Corporations agree to the fact that loans are easy to obtain and use than any other source of finance which is hard and time consuming to obtain.